What Is Class Action? The Key Benefits and Examples, Explained

What Is Class Action? The Key Benefits and Examples, Explained

Did you hear about the diesel dupe?

Volkswagen was in a rush to please American consumers, so they fast-tracked the production of their diesel vehicles. Under testing conditions in the lab, the engines were perfect.

However, once the cars hit the road, they began emitting 40% more than the acceptable amount of air pollutants. Now, Volkswagen is doing its best to rebuild trust with American consumers, along with having to pay billions of dollars towards a class action settlement.

When a company messes up, they should have to pay the price, and that’s where lawsuits come in. What is a group action lawsuit exactly, and how do they work? Read on to find out!

What Is Class Action?

What qualifies as a class action lawsuit? Whenever a group of people suffer from the same thing and decide to open one lawsuit, it’s a group lawsuit. The group of individuals who are opening the lawsuit constitutes the class. This style of group lawsuits can also be called multi-district litigation.

It’s common for group lawsuits to take place when a group of people sues a manufacturer or corporation. If the company behaves negligently, and it caused the consumer’s injuries, they have grounds for a case. Examples of group lawsuits would include things such as breach of contract, false advertising, and defective medication. Employee discrimination and illegal business practices could also easily become class-action lawsuits since it is easy for multiple people to be affected by these crimes.

Lawsuit Rebates

When a company loses a group lawsuit, they have to pay class action rebates, as Red Bull did. Red Bull is a great example of when a company’s false advertising led to a lawsuit. Since the drink doesn’t give consumers wings or enhance their bodies in any way, a class-action lawsuit was launched against Red Bull.

In the end, Red Bull wound up having to pay millions of dollars into a class action settlement fund. Consumers who were upset that the energy drink didn’t deliver its promises were able to claim a $10 check or accept a coupon for $15 worth of Red Bull products.

Minor Injuries

The Red Bull class action lawsuit is a great example of a case that didn’t involve injuries. When it comes to joining a class-action lawsuit, you don’t have to be suffering from major injuries. Even if you have minor injuries, or experience a minor inconvenience, it could still be worth your time to join the group lawsuit.

After all, you never know who else has been affected by the company’s negligence. By doing your part to pursue financial compensation, you’ll also be paving the road for the other consumers who will benefit from the case.

Typically, group lawsuits settle outside of the courtroom, so you won’t have to worry about showing up for trial. Instead, you’ll be able to protect your interests, while doing as little legal work as possible.

What Lawsuit Is Best For You?

Since you’re reading this article, you’re probably wondering, “should I file a lawsuit on my own or join a group lawsuit?”. The answer is going to depend on the details of your claim, as well as the extent of your injuries. By visiting sites like, Consumerprotection.net, you can gain insight as to how to protect yourself as a consumer.

Typically, a class-action lawsuit can help what would be a small claim, turn into a claim that gains more traction. By adding together the grievances of multiple consumers, your class action lawsuit could have a stronger outcome than an individual one would.

On the other hand, if you’ve suffered a major injury, such as permanent disfiguration, an individual lawsuit could help you get a larger settlement payout. In cases with severe injuries, having that extra money can make a big difference when it comes to getting the medical care you need. However, there are also a lot of benefits when you go with a class-action lawsuit.

Benefits of Filing as a Group

One of the biggest benefits is that you’ll likely be able to get through the legal process with less time spent in your lawyer’s office. Instead of having to meet with your lawyer one on one for periodic case updates, you’ll have a group lawsuit lawyer managing things. It’s normal for attorneys to offer free consultations to potential clients.

If you think you might have grounds for a lawsuit, but you’re not sure if you should file as an individual one or a group, reach out to an attorney. Set up a free consultation, and provide the lawyer with as much evidence and details as you can about your claim. At the end of the consultation, a reputable attorney will be able to advise you on the best course of action for your case.

You may wind up not having a case, since the time, and finances it would take to launch it. If the time and money it would take to execute your case don’t outweigh the payoff potential, then you probably shouldn’t file a lawsuit.

However, that’s not a judgment call a consumer should make on their own. Talk to a legal professional, and let them at least point you in the right direction.

Do’s and Don’ts of Lawsuits

Let’s say you’ve decided to join a class-action lawsuit, now what? For starters, we suggest avoiding social media at all costs. The defendant’s legal team is going to do everything they can to prove their innocence. If your class-action lawsuit involves injuries, social media could be a tool that the defendant uses to discredit the consumers.

Facebook posts about feeling good, or happy Instagram pictures, could be used as proof that the consumers aren’t suffering. If the consumers aren’t suffering, why should the corporation have to pay a settlement? This is the kind of legal mentality you have to adopt when you’re entering into a lawsuit. The things you say will either help or hurt your case, and that includes what you say online.

Get the Compensation You Deserve

There you have it! An inside look at what class action lawsuits are all about. Since determining whether you should file an individual or group lawsuit can be tricky, reach out to an attorney today. Talk to a trusted legal professional, and find out the best legal direction to head in.

Before you know it, you could be receiving a settlement award to help compensate you for whatever your grievance is. For more tips like the ones in this article, explore the rest of this site.